Quantity Demanded

question 32

Essay

Quantity Demanded. Gurgling Springs, Inc. is a bottler of natural spring water distributed throughout the New England states. Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains. Operating experience during the past year suggests the following demand function for its spring water:

where Q is quantity in thousands of five-gallon containers, P is price ($), Pop is population, I is disposable income per capita ($), and A is advertising expenditures ($).
A. Determine the demand curve faced by CPI in a typical market where P = $4, Pop = 4,000,000 persons, I = $50,000 and A = $400,000. Show the demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B. Calculate the quantity demanded at prices of $5, $4, and $3.
C. Calculate the prices necessary to sell 1,250, 1,500, and 1,750 thousands of five-gallon containers.

---

Definitions:

Consideration of Marriage

Consideration of marriage is the legal or moral obligation taken into account when entering into a marriage contract, often involving mutual promises or agreements that form the basis of the relationship.

Money Judgment

A court order requiring one party to pay a sum of money to another party as compensation for losses or damages.

Interpretation of Contracts

The process of determining the meaning and intent behind the written terms of a contract by examining its language, context, and the parties' intentions.

Technical Terms

Specialized vocabulary associated with a specific field of study, profession, or activity, used to communicate precisely within that context.